HBA of Michigan said the cost of lumber alone has raised the cost of a new home by $36,000 since the beginning of the year.
MICHIGAN, USA — For many people building homes, decks, or completing other projects, the price of the materials has increased the budget.
In fact, the Home Builders Association (HBA) of Michigan estimates the cost of lumber has raised the price of a new home by $36,000 since the beginning of the year.
“It’s just thrown fuel on the fire of affordability in our state,” said Bob Filka, CEO of HBA of Michigan, “As it is, we are facing a huge housing shortage in our state, particularly for homes that are really in that middle price range, that first-time homebuyer home.”
Filka said often the higher-end builds can absorb the extra cost with a low interest rate. However, for those looking to build the middle-end and starter homes, priced usually between $250,000 and $300,000, it could push them out of being able to afford it.
It is not just the cost that is up for lumber and other materials, but the availability. Filka said they have some builders with a waiting list of two years or longer for new customers.